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tv   Power Lunch  CNBC  January 22, 2014 1:00pm-2:01pm EST

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there's a hidden, you know, strengths in their snack food businesses that aren't there. everyone knows their problems. they are out there. we're getting into a huge cash flow generator, huge returns on capital. these are attractive stocks and the odds say that with these type of stocks, we will do quite well. once again, we own over 300 stocks on the long and 300 on the short. >> 3d systems is one of the short. thank you for coming in. "power lunch" starts right now. "halftime" is over. the second half of the trading day starts now. >> indeed it does. it is a "power lunch" today that is full of numbers. we start with that number right there, 25. cnbc is officially celebrating our 25th anniversary starting right now, and one of the many things that we're doing is listing the 25 most influential men and women in business. that number, however, starts at 200. there are 200 men and women on our list so far, so we need your help to debate those names and narrow the list to 25.
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see how involved you can get today. we would love to hear from you. another number is 21. jim cramer is here to talk about the 21 ceos he thinks are worth betting on. the "mad money" man says the ceos behind these 21 stocks are worth investing in and the list is coming up in just about one minute. another big number today? 48. in roman numerals as the countdown to the big game begins, we have the three men on the super bowl committee, woody johnson, jonathan tisch and al kelly join us. jim cramer and tyler are with us as well, getting set for cramer's list of 21 bankable ceos. first we want to start with updating you on the other big themes of the day today. one of them is the dow which is down 34 points right now. the s&p, a fractional gain on the trading session of 1 3/4 points. the nasdaq is up almost 19. now let's quickly focus on two
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companies, both of which are really struggling based on their earnings news and that's part of why we saw that loss on the dow. both have ceos trying to follow in the footsteps of legends. at ibm and at coach. shares of ibm have been down today, that's the big drag on the dow right now. they are down almost 3.5% at $181.85. ibm missed its revenue expectations last quarter. the company released its numbers last night, saying the numbers were hurt by a lack of demand for servers and storage equipment. then of course, there is coach. the shares there are down as well, now down 7%. the company said sales dropped more than predicted during the holiday shopping season. coach shares are down a full 20% in a year. same store sales down 13.6%, the third straight quarterly decline. now you're all set. ty, over to you.
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>> you wouldn't bet on a football team without knowing the coach. don't pick a stock without knowing the ceo. >> you just make me smile, jim cramer. jim cramer has a great new book called "get rich carefully." chapter five, he plays a game of 21, the bankable 21. it's about 21 ceos who are leading companies with stocks you should consider for your portfolio. we will go through those 21 ceos over the next three days. today, we will start with seven. this is really betting the coach. this is belichick versus mike shanahan of my redskins. >> exactly. it's funny because if you look at the people who are in the final four, pete carroll, harbaugh, belichick, these guys -- >> they are a cut above. >> john fox doesn't get enough recognition. what i'm saying is if you stripped any of those people out, you probably would not like those teams. i'm talking about people i have looked in the eye multiple times on "mad money" and feel that they are the coaches that if you
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were to take them and move them to another team, we mentioned the eagles beforehand, chip kelly comes in, turns the franchise around, you take these people and you can bet on them and what they're doing through thick and thin, because they have been so successful. >> these men and women know how to do business right. isn't that the whole point here? >> they know how to do it strong, ethical, profitable growth for all. this is what we're looking for. >> let's look at the first seven. it's an interesting mix, not all from the same industry. bob benmochet. mark benhoff, salesforce.com. david cody of honeywell. sandy cutler of eaton, big auto parts maker. >> lot of aerospace. electrical. >> chuck bunch, a person i don't know. and alan mullaly. we got all the kings here. >> by the way, i don't want to
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call -- they are kings who are women, too, because -- >> flip over a card. your pick, dealer's choice, who do you want to pick on first -- not pick on, but tell me why they are guys you should follow. >> the lead story in this hour is ibm, okay? we can say that ibm may not have the right coach anymore but i think ibm, i like what warren buffett felt when he bought this. they talk about the cloud business but it's minuscule compared to the rest of the business. this man and his ideas are eviscerating ibm. >> all about the cloud. >> yes. >> all about the cloud. let's go old school with mr. cody or mr. cutler of two industries -- or mr. mullaly. >> alan came in at a time when the auto business was falling apart. what did he do first? finance. just like he did at boeing. he understood balance sheet. he understood the balance sheet is important. raises the money, the other two
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major companies go under. since then he's reinvented ford. ford has stalled as a stock, it is still down a couple bucks from where it was two years ago. i do believe that he is bankable. witness the fact that microsoft was trading up even though he's certainly an old school guy, people want to bet on him. i think that he's going to prove ford going back to its high from when he came on. >> he's a perfect example of this. boy, the people at microsoft wanted him, as i understand it. >> because he is a guy who believes in profitable growth for all. that is his mantra and it's for shareholders, it is for people who buy the product and for the workers. i like that. i like that a lot. >> we have, as you know, our list of the 200 finalists, the icons, rebels and leaders who transformed business over the past 25 years. it is no coincidence that i believe four of these, of your first seven, are on that list. >> yes. i think that what's important,
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benmochet, we could say he didn't get the thanks that he deserved for saving aig. but here we are discussing him as one of the -- he would certainly be in my pantheon because he took a company we all thought would go under, be the biggest black hole in the history of the united states treasury and turned it into something profitable. what a remarkable task by a man. sheer, sheer integrity. brains, couldn't ask for more. >> and energy as well, that it takes to do that. what a complex job he had to take it, decide what to keep, what to get rid of, deal with the taxpayer angle there and health issues as well that he has had. >> right. he's triumphed over pretty much everything, lightning speed. he dealt with a lot of moving parts very quickly. still doesn't get the appreciation. the stock is a good one. >> as we debated our 200, we had a spirited debate on michael eisner, who also happens to be on the list, and bob iger. iger is one of the most likeable guys in business. one of the best.
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>> totally. he is very likeable. one thing i share with him, birthday. >> come on. >> you will see people come to the green room for "mad money" and they will have a posse as if they were dealing with rock stars, okay? you walk in the green room, you hear that iger's in the green room and you go in and he's the only guy there. like he's having cantaloupe. here's a man who decided you know what we're going to do? we are going to create brands. we are going to have brands like pirates. so you've got a theme park. you've got merchandise. you've got movie. you can do iterations. look at the "star wars" purchase. it will be brilliant. >> "star wars," marvel, pixar. this is a transformer, this guy. >> yes. what's amazing is that this was a company that many people had given up on. but this man transformed it. >> absolutely did. he's a wonderfully personable
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fellow. i was working for abc years ago when he was president there and i was having a coffee at a coffee shop and he came -- i was nobody, you know? he came over and introduced himself and said hello and asked me how things were doing. you never forget that kind of touch. >> i was on "good morning america," followed you. one day he came in said you know what, jim, that was so fabulous. all i would do, i would change this, maybe change that, maybe change this, change that. otherwise he hated what i had done. he started out by making me feel good. he's that kind of guy. inspirational. >> mullaly, the same sort of guy. you can talk to him. >> what's amazing about alan, alan is a guy who while being old school had a lot of very fresh technology ideas for ford. you are seeing that. by the way, one of the main ones, lightweight it. he's endorsed aluminum more than anyone. >> that truck. 700 pounds. if i could lose 700 pounds i would be in great shape. >> we did our show from the
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f-150 iconic plant. what is going on at ford is one where i believe that everyone likes him. that's important. for my bankable ceos, there have to be more than -- belichick would be difficult there because i don't know whether they really like him or not but they like winning. >> how about chuck bunch? ppg i know the company. >> glad you mentioned bunch. there are three guys up here people may not be familiar with. bunch, cody and cutler. these people took companies that were basically ho-hum run of the mill companies. honeywell is -- >> old economy companies. >> he has reinvented it, as a climate change, great auto, great refining chemicals, he's done so much beyond just honeywell which was just a mismatch. watching dow chemical yesterday, take a look at what coleman attacking dupont. what was that about? trying to be like chuck bunch.
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go proprietary and look at the stock performance. when you look at a guy like sandy cutler, he inherited a company that was really about class 8 trucks and he turned it with that last acquisition of cooper into electrical equipment juggernaut that has just moved that stock and moved that stock up. he's about shareholder value, he's about dividend. he is about recognizing that he can be the dominant electrical company in the world. >> you would say here about all of these guys, i think there are a couple things, just to hear you talk, these are visionaries, they had an idea about what to do with the company, they are excellent executors, and they have courage. benmochet had to have courage. all of these guys had to have coverage. >> guess who they worked for, all of these? >> shareholders. >> yes. how many do that? not enough. >> not enough. >> i got 21 in the book. >> we have seven more tomorrow, seven more on friday. you will stick around. we will kick around our list of 200 with you in just a couple minutes.
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once again, the book is called, it is a good read, "get rich carefully." we'll be right back with more. today's yahoo! finance question of the day, do you invest in companies based on the ceo or do you prioritize other factors like earnings, products, services? i bet you will see a lot more people saying i look closely at the ceo after today. we will reveal the results later. sue? >> great conversation, guys. see you in a minute. to dominic chu for a market flash. >> check out what's happening with bringo which just resumed trading after being halted on news that a judge ruled in its favor that google's modified version of ad words still infringes on the patents owned by vringo. they have a market cap of $325 million but trading sharply higher on this news. back over to you. >> wow. 20% gain. all right. thanks, dom. a little later on "power lunch," the men behind super bowl xlviii including the owners of the jets
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and the giants. plus 200 of the most influential names in business. life with crohn's disease or ulcerative colitis is a daily game of "what if's". what if my abdominal pain and cramps come back? what if the plane gets delayed? what if i can't hide my symptoms? what if? but what if the most important question is the one you're not asking? what if the underlying cause of your symptoms is damaging inflammation? for help getting the answers you need, talk to your doctor and visit crohnsandcolitisinfo.com to get your complimentary q&a book, with information from experts on your condition.
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welcome back to "power lunch." check out shares of advance microdevices, amd. the stock is down double digits in very heavy trading after the chip maker forecasted a bigger than expected fall in quarterly sales. this due to weak pc sales and a drop from revenue in gaming consoles after a strong holiday season. as a result, the capital markets cut their price targets on amd shares. so one of the bigger losers in today's session. back over to you. >> thank you very much. to kick off the year-long celebration of cnbc's 25th anniversary, we today unveil a list of the 200 most influential businesspeople of the past 25 years. over the next few months we will narrow that list to the 25 ultimates, the definitives. we did our own noodling to come up with that first cut of 200. we also assembled a three person blue ribbon advisory board to help us narrow and also expand our list of final contenders.
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the board included hermania navara, who added a global dimension for us. jeff sonnenfeld, and paul stieger, long time managing editor of the "wall street journal" and chairman of pro publica, the journalism group that does work in the public interest. today we will get the conversation started with our version where you can head to cnbc.com 25 to vote for your picks and leave your comments. the conversation has already started there. i voted for my 25. to highlight some of the more controversial figures, let's bring in one of our advisory panel members to join sue and jim cramer. jeff sonnenfeld, cnbc contributor and associate dean for executive programs at the yale school of management. welcome. good to see you. i want to get you to raise and make the case for some of the people whom you pushed hard for on our list of 200.
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let's start with quincy jones, the music producer, the guy behind michael jackson's "off the wall" album and "thriller." why was he so transformative? >> you're absolutely right, he did some of michael jackson's biggest selling records but he goes back through frank sinatra, miles davis. he goes back to lyle hampton. we don't know anybody who has this range. he would hate me telling you this, he's 80 years old, but he would be the youngest one on the set and he has -- which is of course a very youthful set, i can see -- but still, there's a sense of liveliness. he's sharp and on the edge of the frontier of his business as anybody. the music business has gone through revolutions in technology and business models. quincy has not ridden it. he has led each of those plus he's been a great tv producer. "fresh prince of bel air," "jenny jones," "people's court" ". he's been a great leader. 27 emmys along the way.
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>> we'll see if he makes the cut down to the top 25. let's go to the next one, someone i know jim has covered and sue as well. some might argue her rein at pepsico hasn't been that successful or it was really roger enrico and she who did some of the formative work of today's pepsi. >> if roger were on the set with us now, he would be the first to say it was her idea to lead the divestiture of young brands. she had to stare down one of their predecessors who had actually brought it on board, taco hut, pizza hut and kfc. this was a hard thing to do. the entrepreneurial freedom that novak and the others have enjoyed is because of indra's liberation. that was her plan. the move into nutrition -- >> exactly. the move into nutrition is key. >> it's incredible. >> let's get jim in here.
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>> you have interviewed her a number of times. i have interviewed her a number of times. i was struck by the fact that she identified the trend towards water first, that the soda craze had peaked and she was criticized because a lot of people thought she was early on that. but it's proven to be very profitable for her company. >> she is one of my bankable 21. yes, she is. come on. there's a big reason why. i was once on another show, we had a stop trading segment and i said i had just had a party for my daughter who was on the swim team, and none of them wanted salty snacks. i said doesn't that spell the end of pepsico. little did i know that in aberdeen, indra was developing more natural, better for you snacks. forerunner of this whole issue. i stood corrected.
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she corrected me. she's one of my bankable 25. >> she's got great lines. very healthy snack foods. >> i didn't know they had -- oh, a third one on your list, sue, when we were young pups in this game, michael dell was lauded as the transformer of industrial process. just in time -- >> you are going to get a dell. everybody was saying that. >> that's why you like him, right? >> yeah. you know, i'm going to segue to something which jim said just before the break about ibm in contrast. i very rarely disagree with jim and most times i regret ever having done so. in this case, michael dell is a reminder about the transformations that sometimes happen sadly because of the short term notion of our capital markets, michael dell has had to take this company private to pull off some of the miracles that jenny is similarly trying to do at ibm. what michael has done is five times over, he has fundamentally transformed dell and he's the one, by the way, who is the
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biggest critic of what they were doing. he would always set himself as the consumer advocate to attack what we're doing wrong. when he went in to do their channel conflict, it was his creation, he resolved it. they used to go into all the computer superstores that used to exist, they decided the 800 direct distribution, he led the way -- >> i agree with you on that, but jim, it also in talking to different analysts who followed that company for a long time, there was a sense that although michael was a visionary when he founded dell, created dell and took it to the top, that he kind of lost control of the vision and the mission statement for the company as well. >> i agree with that. i think one of the reasons he had to take it private, and i like michael dell very much, is he wanted to bring control back. remember, he is on the backs of andy grove and gordon warr at intel and also, on the backs of bill gates and microsoft. i think some would say he was an
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assembler. others would say he was an early believer in mail order and that's how you get it. i think he's a transformative guy but one of the things he did was make you a ton of money during the heyday. >> he does know how to pick up the fragments. you could call him a packager or whatever, he is a transformer. this is what people who take a fragmented business, whether or not it's the earliest days of bill rosenberg and dunkin' donuts, whatever. he knows how to make sense of something fragmented. he hated the fact that his disciple, his successor, kevin rollins, a beautiful wonderful former consultant, was making a religion out of dell. he said this is a business. sometimes it takes the high priest like howard schultz at starbucks or steve jobs of apple to come back and challenge the religion created around them and say it's time to move and grow and move on. which is what he's doing. >> part of the beauty of lists like this is they spur debate. i remember in our internal conversations, jeff, while i don't want you to spill the off the record kind of things, there were several candidates who were
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ultimately on the list whom you argued maybe shouldn't be or that we should consider in a different light. let me ask you your quick thoughts, quick thoughts on john brown, lord brown of bp, mickey arasin of carnival and ed whitaker of southwestern bell, at & t and ultimately, gm. >> those three get a lot of credit they don't deserve and don't have all the accountability they should have taken on. take a look at mickey, you had six ships in distress, most dramatically the "triumph" last year. he has always hid behind his lieutenants. it's an old joke in the maritime world that it's the captain who announces shore leave and the first mate has to announce the bad news. mickey doesn't announce good or bad news. he has 4,000 passengers at risk at sea, unable to figure out how they are getting back and families not being notified. >> let me get you to comment on
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that. >> three, four, seven day cruise. these are ways to be able to feel like a king in a very inexpensive travel. like a lot of people i know, including family members, this was a way to be able to have a glamorous vacation for a lot less. that's a big change for america. >> richard faine was doing that before at royal caribbean. mickey saw good ideas others were doing and with the scale he inherited from his dad's business, managed to ramp it up. >> i would not put mickey on but i know he popularized -- look, these other guys are terrific. he's a great merchant of the concept. >> i have to agree to that. not a great spokesperson, not accountable and the business is in trouble and it's because of him. no one else is doing anything wrong except they have this shadow ceo, since he's not the official ceo now. ed whitaker, you wonder -- >> very quickly. we are running out of time. what's your beef with whitaker?
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>> he replaced a very good guy who was taking them out of bankruptcy for no other reason than personal vanity, unfinished late career agenda. i don't understand why he did it. there was a lot of confusion, gm has succeeded despite the tumult in top leadership. who was the third? >> brown but we don't have time. >> he never missed a college campus. bp stands for beyond petroleum, unlike beyond principle. where was he -- >> how do you really feel about these guys? >> this whole list, no matter what part of the planet you go to watching this show, is that, the great cnbc for 25 years, is that in this world of self-directed work teams and empowerment and all the rest, single individuals make a difference. the world is different because of the people on this list. we should -- you don't see a part that's a celebration to a task force. >> as jim made the point in the prior segment, it really does matter who's leading these companies. >> absolutely. >> thanks very much.
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please remember to vote for your picks at cnbc.com25. puckett a write-in candidacy on there. head to cnbc.com for your favorites. the website is ready and waiting. >> we need your help to whittle it down to 25. it's not going to be easy. we ask in today's yahoo! finance question of the day, we want to know based on jim's bankable 21 and his terrific new book, do you invest in companies based on the ceo? 10% so far say yes, i look closely at the ceo. 25% say no, i bet on the company and its earnings. 11% say i base investments on company products. 55% say i try and take all factors into account. >> good ceos are behind the products. good ceos are behind the numbers. the bad ceos are behind bad products and bad numbers. >> there you go. jim cramer. coming up, hedge fund titan ray dalio says the u.s. is in the boring years.
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how do you make money if he's right about that? plus the ceo of trans-canada on this big day for his company. it starts shipping oil on a new u.s. pipeline. "power lunch" is back in two. [ male announcer ] there is no substitute for experience.
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welcome back to "power lunch." check out shares of general dynamics. the company's ceo forecast a slight drop in earnings and sales for 2014 but that's not what investors are focusing on. the ceo also said it would aggressively return cash to shareholders through things like
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share buy-backs and dividends so those shares, you can see, up on today's session. sue, back to you. >> thank you very much. as of this morning, trans-canada is now shipping crude oil through the southern portion of its keystone pipeline. the 700,000 barrel per day gulf coast project spans 487 miles from cushing, oklahoma to the refineries on the texas gulf coast. shares of trans-canada down just slightly, about a quarter of a percent today, down 10% in the past year. just how important is this pipeline opening to the u.s. oil market and canadian oil market, for that matter? joining us live from calgary is trans-canada ceo russ gerling. nice to have you here. congratulations. >> thank you very much. thank you for having me. >> tell me how this is going to transform the oil market. in talking to some oil traders, they will be watching this very carefully because we have seen some kind of disproportionate moves in the oil market recently. >> yeah. i think it is obviously important to both producers and refiners. on the producing side, the glut
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of crude oil in the cushing area has resulted in a discount or wider discount than normal, and because you couldn't get to the gulf coast, those refiners were having to pay world market prices for their supply. by connecting the two, the refiners will be able to access cheaper supply and the producers will get a higher price for their crude. win/win for both u.s. producers and u.s. refiners and hopefully that translates into some benefit to u.s. consumers at the pump. >> does it make a difference, i'm just looking at the fact that canadian crude dropped to more than $40 per barrel below west texas intermediate back in november. will this, do you think, even out the relationship between canadian crude and u.s. crude, and how might that impact your bottom line? >> on your first question, canadian crude isn't going to be impacted as much because it's still a constrained and we're still using inefficient transportation methods to get the product from canada to
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cushing. those differentials i don't expect to get hit much. they will move in slightly. but i think the more important thing as i said for canadians is that they now have had an opportunity to participate in that marketplace and over time hopefully things get better for them as well. >> parts of this project have obviously been controversial and down in texas, there were a number of people who said they will be watching this pipeline like a hawk. what reassurances can you give them that things are going to go well, go smoothly and go safely? >> i guess at the start, the construction, this will be the safest pipeline ever built. we committed to 57 conditions which included closer valve spacing, higher strength steel, burying the pipe deeper in the ground all of which contribute to this being probably the safest pipeline ever built. on top of that, the continuous monitoring the regulators have had on us through the commissioning phases and as we
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have repaired any deficiencies we have had, we have had some, but our inspection programs have picked those up and we have repaired those. i actually welcome the scrutiny and oversight. that will help us be better, it will ensure this pipeline does operate safely and if it does have any incidents, we will be on top of them right away and deal with them in a safe and efficient manner. >> it's a busy day for you. before we let you go, we are celebrating our 25th anniversary and we are coming up with a list of some of the most transformative, influential 25 people, ceos, in different sectors. as you look back over the last 25 years, in your particular sector, energy, who comes to mind for you? >> i think that there are obviously the visionaries that have brought new technology to the table and in the u.s., i can think of the folks that brought together horizontal drilling and multi-stage fracing which have released enormous reserves of
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natural gas to be available. that technology is now being transferred to the oil side. we are seeing an increase in production and certainly from a canadian perspective, the technology that's been employed in moving the oil stands as far as it has and moving it to a place where its production meets the same environmental standards as other conventional barrels around the world. that's going to make north america energy self-sufficient and i guess those visionaries behind those technologies would be the ones i would put at the top of the list, the top awards for the last 25 years. >> no one individual but those who collaborated to come up with some very interesting new technologies. thank you very much. appreciate it. >> thank you very much. bye-bye. >> ty, over to you. >> very interesting thoughts there. certainly over the next 25 years, those developments in energy are going to really tell an economic tale in north america. the billionaire activist investor carl icahn snapping up
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more shares of apple. the stock an underperformer in 2013, having an up and down ride so far in '14. if icahn's doing it, should you do it, too? before the break, though, some sector winners. home construction, railroads, coal. back in two. ♪ ♪ stacy's mom has got it goin' on ♪ ♪ stacy's mom has got it goin' on ♪ ♪ stacy's mom has got it goin' on ♪ [ male announcer ] the beautifully practical and practically beautiful cadillac srx. lease this 2014 cadillac srx for around $319 a month with premium care maintenance included. ♪ i'm bethand i'm michelle. and we own the paper cottage. it's a stationery and gifts store. anything we purchase for the paper cottage goes on our ink card.
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volatile market in january after a huge run-up last year. perhaps that's no surprise. the nasdaq posting a gain this month but the dow and s&p are both down. what should you do in 2014, especially when hedge fund manager ray dalio says the u.s. economy is boring right now and china may be in a bubble. we welcome back katie nixon, chief investment officer at northern trust wealth management and andrew slimmen, manager director for global investment solutions at morgan stanley. great to have you here together. welcome. katie, we talked to you a little at the end of 2013 and you had made some changes in your tactical allocation at that point. we have now come into a new year that has been a little rough for some investors who were used to a relatively strong and smooth market in 2013. so what are you doing now? >> well, we're sticking to our
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guns with our overweight to u.s. equities despite the rough start to 2014. it's not unexpected and we are telling our clients to expect a little more volatility this year coming off a year that despite huge gains, was very low volatility. >> andrew, what about you? we talked last time about earnings. take a look at the numbers, take a look at the bottom line results for these companies, and we're in the heart of earnings season right now. what do you see and do you like what you see? >> look, my response on ray is boring is good, because boring has been the story of the economy the last four years and that's been a pretty good period for the stock market. so boring, the market will continue to meyer. until we start to worry that the economy's getting less than boring. too much growth, that will change fed policy. that's when it will get more volatile. >> from the ray dalio perspective, he's a hedge fund manager and he needs differential in the market. he needs the edge. he needs a little bit of that volatility. but for the average investor, for the retail investor, boring can work for you. >> exactly. there are a lot of stocks out
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there where these companies are doing well but still trade very reasonable multiples. i don't think it's a tough time to be a good stock picker and find good ideas. >> katie, look globally for me. we just recently did a cnbc.com survey of certified financial planners. they all have by the majority of them, maybe 90% of them, still have their clients in equities but the difference in that survey was they are looking outside of the domestic market. are you looking outside the domestic market? >> we are. as you know, we have been fans of the developed xus equity markets for quite some time. in fact, we have an overweighted international developed markets like the uk, japan and even the eu. so we like international. we are neutral on the emerging markets, recognizing there is still a lot of uncertainty there. but we like europe. europe is a little bit boring as well with very slow recovering economic growth and you know, the u.s. is very similar, slow recovering economic growth which allows central bankers to continue to be accommodative
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which is a key support for the equity markets. >> does the fed factor into the way you look at this market? >> absolutely. remember, don't fight the fed. the fed turned accommodative at the end of '08 and it's been a great period for stocks. the fed will change before the ecb or bank of japan so the stock market here might get tougher than in europe or japan, but that's a ways out because as long as we're in that boring period, as ray said, stocks will continue to move higher. >> thank you both very much. the lesson is boring can be good, ty. that's the lesson. >> that is what i try to tell lots of people over the years. to super bowl xlviii in new york, that's xlviiix something, i don't know. broncos/hawks. it will be a big game. the team behind the big event is going to join us to talk about preparations, members of the host committee will talk about security, weather. we might even talk about richard sherman's rant. jets owner woody johnson, giants
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co-owner jonathan tisch and the new york-new jersey super bowl committee head al kelly join us after this. [ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. [ car alarm chirps ] ♪
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welcome back to "power lunch." it's been one heck of a week for blackberry shares, up nearly 25% during that time span. earlier this week, the department of defense announced it would approve the use of 80,000 blackberry devices and on friday, citron research gave positive comments with the stock and a price target of at least $15 a share. late tuesday, the company also announced it would divest of the majority of its real estate holdings in canada. those shares up another 7.5% today. blackberry continues higher. tyler? >> thank you very much. we are very pleased to welcome
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our next guest to "power lunch." 11 days and counting to the big super bowl xlviii at met life stadium, about maybe eight miles from here. it's home of the first outdoor cold weather super bowl, football, old school. here to talk about plans for the game day, jets owner woody johnson, giants co-owner jonathan tisch and new york-new jersey super bowl host committee ceo al kelly. folks, welcome to "power lunch." great to have you. welcome back, jonathan. i guess, mr. kelly, i would start with you. if the super bowl were to have been held yesterday in the new york market, with the snowstorm, what would you have done? would you have held it, postponed it? >> well, that is a decision really made by the national football league informed by public safety. i think looking at what happened yesterday and the storm's intensity through the day, it would have been a tough day to have pulled off the game. but we've got contingency plans in place and if we have to make
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a move, we have to make a move but our objective and the league's objective is to kick off the football february 2nd. >> any perspectives here? would you have recommended to the league or mr. goodell they postpone the game for a day based on yesterday's weather if it had been yesterday? >> fortunately, we don't have to make that decision. the league makes that decision. >> you might. >> we were prepared. i mean, i think if the people had been in town, the big problem was getting in town. most people will be in town at that point so you probably could have had the game. the roads were clean, the stadium could be cleared out. they did a dress rehearsal this morning. yeah, i don't think that would have been much of a problem. >> my first football game at 7 was lambeau field. i would have voted to hold it because snow is nothing to me. you know, jonathan, if i can talk about the economic impact because you are really the emissary of tourism and those
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who come to visit new york. and this is going to be a huge event, obviously, but new york is used to huge events. the times square new year's eve celebration. this time you will block off 13 blocks from times square to herald square, kind of an open air football festival. i would assume that is going to have an enormous economic impact to both new jersey and new york. >> through the cooperation between the governments of new york state, the great state of new jersey, new york city, now the de blasio administration starting with the bloomberg administration, everybody has been very much involved in the conversations. we estimate that some 400,000 people will be coming to town over the next ten days. 82,000 will be able to see the game in person. the rest are here in some support functions, they work for the companies that are sponsors. when you add up the numbers, you are looking at about $550 million of economic activity. just think about the jobs that is going to create in travel and
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tourism. that's why we are bullish about our industry. that's why we try to bring these big events to the region, because they pay the taxes which go on to support our firefighters and our police officers. these events are really big and they are important for the economy. >> mr. kelly, i would like to question about security, if i might. there have been obviously a lot of attention in recent days about sochi and the risks there of potential terrorism. the so-called black widows that are being pursued by the russian government. what is the security situation at the super bowl and what can you tell viewers and people who might be attending the game about safety there? and what they're going to need to go through to get into the venue? >> since 9/11, the super bowl has been a level one national security event as designated by homeland security. the new jersey state police have the designated local lead and they with their partners at nypd have very comprehensive plans
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and resources that they will bring to bear. there's a 300 foot perimeter that is being constructed as we speak around the stadium that is part of the security makeup. the normal perimeter is about 100 feet. on top of that, everybody entering the game will have to go through a magnetometer and no packages will be allowed brought into the game other than a small clear bag. so i have tremendous confidence that our law enforcement is the tops in the country and i think people who come to visit us in new york and new jersey over the next ten days should feel very, very safe in the hands of the new jersey state police and nypd. >> mr. johnson, let me go to you next. first, what do you think of the matchup and then we asked you each for a pick for the cnbc 25. most influential people that you can think of. first the matchup. >> the matchup is extraordinary. you can tell by the ratings of the games leading in, the highest ratings ever. so these are the first rated teams to get in in a number of
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years. it's kind of a contrast between the peyton manning kind of old school quarterback, fabulous hall of famer, and the russell wilson, kind of read option quarterback. that should be an interesting, just from a public standpoint. i think the game will be absolutely extraordinary. as to your second question, having looked at that list, i would just say that susan blakely i think is somebody i thought was fabulous because she really changed for women -- >> the designer of spanx. i worship at her feet. >> exactly. she really changed the world for women and some men. larry ellison also coming back in the america's cup, he was down 1-8, one more race he would have lost. he came back 9-8 and won that. george lucas, you can't argue with george lucas. he's changed all of our lives
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and perception with "star wars." fred smith, college project made good. he's in every country in the world. he took the post office and made it a heck of a lot better. the last one would be ralph lauren. he's changed our perception of that industry. >> very quickly, your top pick? >> if i can go off the list a little and offer up a write-in candidate. >> sure. absolutely. >> bill marriott. i think that bill has made an enormous contribution to the global travel and tourism industry, taking his family's soda shop and turning it into a global force in hospitality, but it goes beyond that, because bill also understands the value of travel and tourism, and uses it in terms of once again, an economic vehicle. bill is just extraordinary in terms of his vision, for what has now become a hotel company that has some 4200 hotels around the world. >> mr. kelly, bring it home.
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>> jim sinigal at costco. it's an incredible model that people actually pay to go shopping and the experience and the super-sized items that are available in the costco membership stores are just phenomenal. that would be my vote. >> to jonathan's point, i grew up in d.c. marriott is one of our last cuts. we will revisit it because of what you just said. we went to the a & w shops. folks, we'll be right back. thank you, gentlemen. i need proof of insurance. that's my geico digital insurance id card - gots all my pertinents on it and such. works for me. turn to the camera. ah, actually i think my eyes might ha... next! digital insurance id cards. just a tap away on the geico app. could save you fifteen percent or more on car insurance. everybody knows that. well, did you know that when a tree falls in the forest and no one's around, it does make a sound?
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a new version of secret lives of the super rich airs tonight on cnbc. what do you have coming up for us, robert frank, 9:00 p.m. tonight? >> well, we will take you inside the fairmount hotel, a famous icon of san francisco. we will show you a room that few ever see. it's the presidential penthouse suite. let's take a look. >> here we are in the living room of this iconic penthouse suite. >> what a room this is. >> if these walls could talk. the events that have been here. >> lots of hotels have presidential suites.
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but this one is the real deal. >> the mistress would work out here, is that basically the idea? >> there are even rumors of jfk and marilyn monroe secretly hooking up in this penthouse. >> having seen the penthouse, whatever happens in the penthouse stays in the penthouse. >> you get a butler, a personal trainer, chef, massage therapist, all for only $15,000 per night. back to you. >> look forward to it tonight. thank you so much. that's it for "power lunch." >> "street signs" right after this break. [ male announcer ] legalzoom has helped start over 1 million businesses.
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pretty much everybody respects ibm as a company, but has big blue made a big mistake that is costing its investors a lot of money? we'll dig in. hi, everybody. that is your top story today. also on tap on "street signs," the goldman sachs strategist who coined the term bric nations will give you some of his best international ideas right now. after a terrible start to the year, what is wrong and maybe also right with retailers and who can still win? and we want to hear from you. who do you think is the

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